Practice Problem - Adjusting Entries Prepared Monthly Cami Company has the following balances in select accounts on December 31, 2021. All accounts have normal balances. Accumulated Depreciation Accounts Receivable Salaries and Wages Payable Equipment Interest Payable Unearned Service Revenue Supplies Prepaid Insurance Notes Payable $ 0 50,000 0 40,000 0 96,000 12,000 24,000 120,000 The information below has been gathered at December 31, 2021. Prior adjustments have been made throughout the year. Interest will be paid when the note is repaid. 1. December 31 is a Tuesday and employees are paid on Fridays. Cami Company has four employees who are paid $1,000 each for a 5-day work week. 2. Supplies on hand total $4,700. 3. Cami Company paid $24,000 for 24 months of insurance coverage effective May 1, 2021. 4. Cami Company borrowed $120,000 signing a 10%, one-year note on March 1, 2021. 5. The equipment was purchased on July 1, 2021. The equipment depreciates $4,000 a year. 6. Cami Company has invoices representing $50,000 of services performed during the last few days of the year. These services have not been recorded as of December 31, 2021. 7. Advertising expenses incurred but not paid on December 31, 2021, are $6,700. 8. On August 1, 2021, Cami Company collected $96,000 for consulting services to be performed evenly from September 1, 2021, through April 30, 2022. Instructions: Prepare adjusting entries for the eight items described above. Cami Company prepares adjustments Monthly. Skip a line between journal entries.